Discretionary Order

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DEFINITION of 'Discretionary Order'

An order giving a broker the ability to decide when to buy/sell securities at the best possible price for the customer. Some discretionary orders place restrictive terms to limit the amount of discretion the broker has.

INVESTOPEDIA EXPLAINS 'Discretionary Order'

When placing a discretion order, the investor is giving limited discretion to the broker and allowing for the timing of buying/selling to be decided by the trader.